Sunday, November 13, 2011

Marketing

For as long as I can remember word of mouth has been the best friend to the surveyor that owns their own business.
I have always puzzled at the lack of marketing the profession of surveying does.
I have done a lot of things from sending letters to people I want to work for and following up with calls, pushing my website, joining networking groups, belonging to the Chamber of Commerce (which I recommend for any small business), placing myself in positions where there are opportunities to meet new business colleagues etc.
After all of this, it still seems that nothing compares to word of mouth.
Now I am going to speak of recent times.
Throughout the last 3 years a lot of us have had our balls handed to us with a major decline in business, old faithful clients are using the cheapest surveyor they can find, clients are trying to get out of having a survey done and guys are doing things for $50 an hour. Yes I said $50.
Oh I also have to mention the roadside marketing genius who is posting signs all over town who is the $50 and hour person.  I could go on for hours about that guy but it will be a waste of breathe. As things come back he will go away. Essentially he will run himself out.
Now the big problem we have in front of us is that we offer a skill that is undesirable to anyone that needs us and if they could get out of using us they would in a second.
So now I say this. Right now is the time for us to set the bar for pricing.
 I will fall back on the word of mouth thing. Since word of mouth and reputation is the best friend of any surveyor in business, why is it a lot of you are afraid to maintain or raise your prices? I will tell you why, because you are afraid that your clients will leave you because of cost.
It’s a good worry, so how are you going to combat it?
I personally have sharpened my pencil, I have cut my staff so I can do things cheaper but I still bill myself out at least $125 an hour and I often can do more circumstance depending.
Have I lost some business? You bet I have. I’m glad to. Those clients that have been with me for years that have jumped ship because of price are all starting to humbly come back. Why? Because the cheap person they went with has done mostly damage and it ended up costing way more in the long run because of extras.
These people always knew where they stood with me because I am honest. Cheap? Ha!! Never!! But they always get quality.
So does quality rule over price? In my world it does.
Bottom line, we are in a profession that is extremely hard to market.
I am going to explore new ways to hit my target market which I know will be different than most of yours, but at least I have one. I have decided to concentrate on certain areas instead of wasting time bidding things that I know someone is going to beat my cost.
This is a topic that I am going to be writing about as I progress and hopefully some of you will learn from my experience even if I fail.
If anyone has marketing tips or stories, please opine.

My next post will be about leadership and the surveyors lack of it in the community and my new found experience with Scottsdale Leadership.

3 comments:

  1. I would rather have a handful of clients who value my service then spend all of time answering phone "bidding" for work. My clients call because they value my opinion and service. Not because I am the cheapest.

    I spend a lot of time helping my clients without invoicing them for it. This is considered reckless by some. However I have found that it helps maintain loyalty between themselves and me. So I go over a title report; read a legal; help with a zoning setback question.

    In the end my clients appreciate it and show that appreciation by always coming back and the added bonus is the recommendation they give.

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  2. To “Anon” – Kudo’s - this mentality has served me well also. As far as John’s comment about having our balls handed to us – Let’s just say, you couldn’t pull a needle out of my ass with a tractor…

    There are many clients (General Contractor’s) that I have worked with at my previous employers company that were taking Surveying proposal’s for well under 50% of what my old boss or I would bid any given project for. An honest proposal mind you. After multiple discussions with multiple clients, he was told quite bluntly – even after years of awesome service & Surveying, watching the backs of everyone on the project, solving endless Engineering problems, re-designing “stuff” and on and on. I know you all know what I’m talking about – we’ve all been there – a million times… (man, do I digress)… - Anyway, they told him “it’s all about the dollars”… My old boss responded – “what about service? – what if they go out of business? “ . The “clients” response – we don’t care about service any more. If they are the low bidder – they win – and until they do go out of business, we’ll take ‘em every time.

    Well, so much for busting your ass for your “Dear Clients”. Right now – it’s only about the dollars. Not only in the Construction Staking Industry – but in the ALTA Surveying business as well. Is there still some client loyalty? – Yes, a little – but it isn’t like it used to be - by a long shot.

    For years, even before “Sparky” was elected, – I / we (true Professional’s) have been complaining about what I call “Skeleton” bids, or the guy who has bid a $10,000 project at 6 grand, 5 grand or even less. We all know what any given project really does take. I personally bid a multi-level Condominium Plat at $ 15,000.00 and at the end of the project, I was fat by $200.00 – Not bad… Again, we all know what any given project truly takes and needs.

    Now – fast forward to the unemployment line… You have a chance to bid a project that you know is worth “10 Grand” and you bid it for 5 – I get it, I truly do… You have made 5 thousand dollars you would have not had. It sucks, but I understand…

    John is sooooo right, in that we need to ban together as a cohesive Profession. I have said it many times. A Registered Professional Land Surveyor, in my opinion, is on par with a Doctor or an Attorney any day of the week. Is this the time to “set the bar” on pricing, hell I don’t know, but if not now – when? Now seems like a good of a time as any. Has your insurance gone down 50%? How about gas? – is it 50 cents a gallon yet? – How about that new equipment or software you need – only 40 thousand ??? – Let’s get 2…. Tell your Attorney and your brain surgeon after they’re done, you’ll give them 50 bucks…NOT. What the hell. Not that I know everything – at a minimum – a 1 Man Survey Crew $100.00/hr. A 2 man Survey Crew $150.00/hr. Cad Tech (even at it’s lowest level) $80/hr. R.L.S. (in the office) $150.00/hr.

    Lastly, lack of leadership – Don’t even get me started…

    Respectfully,

    John “Dane” Bumpus, R.L.S.

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  3. Although I agree with the above comments; I don't believe that professionals should "bid". Professionals provide estimates based upon professional opinion. Or that is how it should be.

    Dane's comments about leadership; here is a thought to ponder. APLS, however flawed at the moment is at least trying to move forward on several fronts. The issue APLS has at the moment; is that there are a few doing all the work while the rest of the club is sitting on their asses. If there is a large contingent of individuals whom do not agree with the current administration of APLS then get involved and assume positions of leadership. A professional endeavors to seek out the best in their chosen field; not the endless quest for mediocrity.

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